Mutual Funds: 11 best ELSS funds that help save on taxes while creating wealth in the long run
equity-linked savings schemes (ELSS). ELSS is a mutual fund category that offers tax benefits of up to ₹1.50 lakh under Section 80C of the Income Tax Act while also providing the potential for market-linked returns.
Examining the five-year returns of ELSS funds shows their impressive performance over the last ten years or more. While some might contend that these funds carry the same volatility as equity-based funds, it’s undeniable that numerous funds in this category have outperformed the benchmark Nifty 50 Index.
As a result, many investors have accumulated substantial wealth. Consider the Quant ELSS Tax Saver Fund, which has provided a return of 26.66% over the past decade.
This fund has performed remarkably well for over 10 years, enabling investors to profit from market fluctuations and also benefit from tax savings.Name of the fund10-year returns (in %)Monthly investment (in Rs) Investment tenure (in years)Invested amount(in Rs)Estimated returns (in Rs)Maturity amount (in Rs)Quant ELSS Tax Saver Fund26.6612,50010 15,00,00059,58,80774,58,807 Source: AMFI (As of March 25, 2024) Many taxpayers regret choosing other ELSS fund options. Nevertheless, these funds have also generated respectable returns since their inception, benefiting many of their investors in the long term.
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